Truist upgrades EW as options traders pile into calls

Edwards Lifesciences reports earnings tonight. Truist Securities chose this morning to flip its rating to Buy, lifting its price target 18.9% to $113. The stock closed at $95.19 on Monday, up 4.8% over the past week, outpacing a median 0.5% gain across its nearest peers.

Analyst conviction sharpens at the bell

Truist analyst Richard Newitter had held a Hold rating with a $95 target since July. This morning he upgraded to Buy and raised the target to $113, a 19% premium to Monday's close. The move arrives on earnings day, which amplifies its signal value.

The broader analyst picture reinforces the shift. The consensus stands at Buy, with 19 Buy ratings against 6 Holds. The mean price target is $102.53. Barclays initiated coverage at Overweight with a $110 target in October. BTIG, UBS and RBC all carry Buy-equivalent ratings. No firm has a Sell.

The bull case rests on TAVR revenue growth and the rapid adoption of TMTT products including Pascal and Evoque, with TMTT expected to generate $740 to $780 million for fiscal 2026. The bear case centres on margin compression: adjusted operating margin fell to 23.7% last quarter, below consensus of 25.9%, weighed by elevated SG&A costs.

Options traders back the bulls

The put/call ratio stood at 0.86 on Monday, 2.2 standard deviations below its 20-day mean of 1.07. Three days ago it registered 0.84, 2.8 standard deviations below the same mean. That is a sustained, unusually large skew toward calls, not a one-day blip.

The 52-week PCR range runs from 0.75 to 2.18. Monday's reading sits near the low end. Options positioning has shifted sharply since late October, when the ratio was above 1.10 for eight consecutive sessions.

Shorts are retreating, borrow is loose

Short interest fell 11.8% over the past week to 1.48% of the free float, near a six-month low. The position has been unwinding since mid-October, when it stood above 1.7%. At this level, short interest carries little structural weight on the stock.

The lending market is as relaxed as it gets. Availability stands at the maximum tracked level, meaning shares to borrow far outnumber shares already borrowed. The cost to borrow rose 63% over the past week to 0.60%, but that number in absolute terms remains very low. There is no sign of borrow stress.

BlackRock added 6.2 million shares in the most recent reported period, taking its stake to 10.2%. JP Morgan Asset Management added 1.3 million shares over the same window. Neither move is consistent with a deteriorating fundamental view.

Data summary

• Price: $95.19, up 4.8% over the past week
• Truist target: $113, raised from $95, rating moved to Buy from Hold
• Analyst consensus: 19 Buy, 6 Hold, 0 Sell; mean target $102.53
• Put/call ratio: 0.86, 2.2 standard deviations below the 20-day mean of 1.07
• Short interest: 1.48% of free float, down 11.8% on the week
• Cost to borrow: 0.60%, up 63% on the week but still very low in absolute terms
• Availability: at maximum, no pressure in the borrow market
• Earnings: tonight, after the close